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Two go head-to-head for Singapore net
Rose Major,
Just two consortia will face off for the right to operate Singapore’s proposed fibre-to-the-home 1Gbps Next Generation National Broadband Network, with incumbent SingTel just a minority player.
The winning bidder will get a grant of up to S$250 million to design, build and operate the active infrastructure of the network.
Although Singapore’s Infocomm Development Authority (IDA) pre-qualified 11 companies to bid, just two consortia responded to the Request for Proposals – the OpenNet Consortium and the Infinity Consortium.
Companies who registered an interest but did not bid included Alcatel-Lucent, BT Singapore, Deutsche Telekom Asia and Nokia Siemens Networks.
SingTel is part of the OpenNet consortium, led by Canada’s Axia NetMedia, an IP services and solutions provider. Axia NetMedia and SingTel both hold 30% of the venture, with media company Singapore Press Holdings and SP Telecommunications owning 25% and 15% respectively.
OpenNet’s proposal involves leveraging SingTel’s exisitng ducting network, which will be turned into an ultra-fast broadband network. And the consortia says its proposal exceeds the government’s requirements, particularly in areas such as timeline (with completion scheduled two and a half years ahead of the government schedule, by June 2010) and design. SingTel’s exiting infrastructure is “critical” but its lack of control is also a positive bonus, says the company.
“It will deliver pristine open access, which is accomplished through: (i) No individual parties having control over OpenNet (ii) Three of the four OpenNet owners are not integrated telecommunications players hence there are no conflicting interests (iii) Network is specifically designed to enable choice by OpenNet customers, large and small (iv) Interests are aligned as OpenNet’s commercial success depends on its customers’ success.”
Art Price, Chairman and CEO of Axia NetMedia, said: “Axia successfully operates Open Access next generation networks in Alberta, Canada and France which give us a unique perspective. We have been very impressed with the sophisticated approach taken by the IDA and our partners in this consortium. “
But rival bidder Infinity Consortium has seized upon the presence of SingTel and is highlighting its own “extensive experience in competing with entrenched incumbents”.
Infinity is owned by Hong Kong’s City Telecom, Singaporean mobile operator M1 and StarHub, which operates pay-TV and telecoms services, including fixed and mobile telephony and cable TV.
Terry Clontz, CEO of StarHub, said: “In addition to the Infinity Consortium having the necessary competencies and a genuine commitment to the establishment of an open access regime, it also offers the industry the best, and maybe the last, opportunity for ownership diversification of critical multi-media broadband infrastructure in Singapore.”
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07-05-2008, 12:26 PM
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